Volkswagen and Union Reach Job Cut Agreement

Volkswagen has reached a significant agreement with the IG Metall union to cut over 35,000 jobs by 2030, while avoiding immediate factory closures and layoffs. The deal, described as a 'Christmas miracle', came after a grueling 70-hour negotiation marathon and aims to generate annual savings of 15 billion euros. Although the company will reduce production capacity in Germany and some operations may shift to Mexico, no involuntary redundancies will occur, and workers will have job security until 2030. The agreement allows Volkswagen to implement necessary cost-cutting measures amid competitive pressures from cheaper manufacturers and a slowing demand for electric vehicles. Union negotiators emphasized the importance of protecting jobs and production while accepting some concessions, such as wage freezes and reduced bonuses. The deal is seen as a crucial step in ensuring Volkswagen's future competitiveness without sacrificing its workforce.